Note up front that we haven't used the device, and maybe in
person, it's actually amazing. In other words, we reserve the
right to change our minds. But based on what we've read, its
limitations -- designed to keep costs low and fit Arrington's
"dead simple" concept -- may cost it too many buyers.

The device has no local storage, and does not appear to
have a slot for add-on storage like a SD card. That
means you must have Internet access to do anything with it.
That's impractical in places like New York, where people spend a
lot of time underground; on a plane; overseas; etc. An Apple
tablet (or even a Kindle) has some functionality when it's not
connected to the Internet. The CrunchPad seems it will have none.

The device has no local apps, and only runs Web sites and
Web apps. This, again, tethers you to an Internet
connection for even the simplest function, like skimming an old
email, reading an e-book, or looking at a to-do list. This also
means that app performance will also depend on your
Internet speed. While similarly priced netbooks are selling like
hotcakes, they also include local storage and support for Windows
apps, and we think netbook owners also spend at least some time
using non-Web apps.

Apple's marketing machine is stronger than
CrunchPad's. Most normal people are only going to buy
one touchscreen tablet in the next year or two -- if any. We
assume Apple will find a way to make its offering seem sexier to
a mass audience. For instance, syncing with iTunes so you have
movies you can watch on a plane. Or reading an e-book in the
subway. Plus, Apple will spend millions on its ad campaign.
CrunchPad probably won't have that option.

To be sure, there are definitely some cases where the CrunchPad
would be adequate, such as goofing off on the Web from your
living room couch, living on a wi-fi-blanketed college campus,
etc. And if it's really priced at $400, it'll probably sell a
bunch of units to curious Silicon Valley-types, coders and
hackers, rich people, the geeks who also bought the XO
educational laptop, etc.

But a Web-only tablet with no local storage strikes us as
super-niche and ahead of its time. And unless Apple goes
super-high-end and wants $1,200 for its tablet, this edition of
the CrunchPad will probably get clobbered.